⁠Is betting legal in Brazil?

Brazil has become a big spot for online betting and gambling. With so many people interested, many betting sites want to join the Brazilian market. But is betting actually legal in Brazil? And what are the rules? Check out below Is Betting legal in Brazil or not?

Is Betting legal in Brazil

For years, most betting was illegal in Brazil. But in 2018, the government saw that a lot of people were betting online. They decided to legalize it to earn money from taxes, offer safer options for players, and fight illegal gambling.

Since then, Brazil has taken steps to make betting legal. Here’s a quick look at the main events:

1. 2018 – First Legal Move: The government passed a law allowing sports betting but still needed time to set up all the rules.
2. 2023 – Betting Law Signed by President Lula: After years of debate, President Lula signed a law that laid out the main rules for online sports betting.

Betting’s Popularity in Brazil

The online betting market in Brazil is now huge. Millions of people are betting, making Brazil one of the biggest markets worldwide. According to the Blask Index, which tracks online gambling, the market grew from 1.3 million in 2016 to 189 million in August 2024. Brazil’s market even beats the next largest, South Africa, which has 55 million.

Some events have helped the market grow even more:

• Sports Seasons: Popular sports events, like football seasons, always boost betting.
• Economic Recovery: Brazil’s economy improved in 2023, which helped the betting market grow.

Also Read | ⁠Is betting legal in UK?

Main Rules for Betting in Brazil

Brazil has put a few main rules in place for betting companies:

1. Taxes: Betting companies have to pay 18% of their income in taxes. Also, any prize over R$2,112 has a 30% extra tax.
2. License Fees: To operate in Brazil, companies need to pay a high fee of R$30 million (about €4.84 million).
3. Advertising Limits: There are strict rules for advertising, especially to protect minors and prevent addiction.
4. Security: Companies need strong security to protect players’ data and verify identities.
5. Brazilian Partnership: Betting companies must be at least 20% owned by a Brazilian partner.

Important Moments in Betting Laws

As the betting market grew, the government had to set clearer rules. Some key moments include:

• July 2023: A law allowed sports betting companies to get licenses and start operating officially in Brazil.
• September 2023: Rules were expanded to include online casinos, not just sports betting.
• December 2023: A new law banned bonuses and required companies to have a local partner.
• April 2024: Brazil’s Ministry of Finance set a plan to fully regulate betting by July 2024.

Current Betting Market in Brazil

Brazil’s betting market is large and growing. As of December 2023, there were 173 betting brands in the country. Even with high taxes and fees, betting companies see Brazil as a good place to do business.

Also Read | ⁠Is Betting Legal in Bangladesh?

Public Opinion on Legal Betting

Many Brazilians support legal betting. In a 2024 survey, 84% of people agreed with licensing betting companies, and 92% wanted clear rules for safe gambling. But some worry about addiction. About 47% of people believe that legal betting might lead to more gambling problems.

What’s Next for Betting in Brazil?

Brazil’s betting rules are still evolving, with the fully regulated market expected by January 2025. Here’s what to expect:

1. More Competition: With more companies entering, there might be better offers for players.
2. Safer Betting: With rules in place, players can expect safer betting options.
3. Awareness Programs: The government may launch programs to educate players about safe betting.

Betting is now legal in Brazil but with strict rules. Brazil is creating a safe and controlled betting environment, making sure both companies and players benefit. Players now have more options but should stay informed and choose safe sites.

Gambling in Brazil: An Overview of Laws and Issues

In Brazil, gambling is mostly illegal, with a few exceptions. Some forms of betting, like on horse races and sports, are allowed, but casinos and slot machines are banned. Here’s a quick look at how gambling laws have changed over the years and what’s happening now.

Also Read | ⁠Is betting legal in Portugal?

Why Casinos Are Banned in Brazil

Casinos have been illegal in Brazil since 1946. President Eurico Gaspar Dutra signed a law that made casino gambling a crime, and it’s said that his wife, who was deeply religious, influenced his decision. The government at the time thought gambling would bring social problems, so they banned it to keep society safe. However, horse betting and sports betting remained legal, as these were seen more as sports than gambling.

Lotteries Under Caixa Economica Federal

In 1967, the government allowed lotteries, but only through Caixa Econômica Federal, a government-owned bank. This made Caixa the only organization allowed to run official lotteries in Brazil, which is still the case today. By keeping lotteries under government control, they tried to limit gambling to protect the public.

The Brief Legalization of Bingo and Slots

In 1993, the “Zico Act” legalized commercial bingo games and slot machines. The idea was to raise money for sports clubs. Then in 1998, the “Pelé Act” came into effect, which adjusted the rules for bingo. However, in 2004, President Luiz Inácio Lula da Silva signed a law that banned commercial bingo, as there were concerns about corruption. After this, commercial gambling, except for sports betting and lotteries, remained illegal.

The Ongoing Debate on Gambling Legalization

Legalizing gambling is a controversial topic in Brazil. Some people argue that legal casinos and slot machines could bring tax revenue and create jobs. They believe legal gambling could boost the economy and bring money to public services.

However, opponents, including some religious and conservative politicians, argue that legal gambling could lead to addiction, debt, and social problems. Members of the Evangelical Caucus in Congress, for example, fear that gambling could increase corruption and addiction.

Because of this debate, many bills to legalize gambling have been introduced in Congress, but none have passed.

Recent Changes in Online Gambling Laws

Although traditional gambling remains mostly illegal, Brazil has started to regulate online betting. In December 2023, Brazil introduced the “Law of Bets” (Law 14.790), which sets guidelines for online betting, covering sports betting and online casinos. This law aims to make online betting safer, setting rules for payments, customer support, advertising, and measures to stop fraud and money laundering.

This means online betting is now legal in Brazil if done through licensed sites. The government hopes this law will bring some control and safety to online gambling.

Also Read | Is betting legal in India?

Crackdown on Illegal Gambling Sites

In 2024, the government announced it would shut down around 2,000 illegal online betting sites by October. The Ministry of Finance published a list of approved sites and banned using credit cards on illegal sites. The government also created a team to tackle issues related to gambling addiction, especially among young people and vulnerable groups. President Lula even called gambling debt a “dependency issue,” pushing for rules to help protect people.

The Future of Gambling in Brazil

Brazil is slowly exploring ways to allow gambling under strict regulations. Rather than a full ban, the government is trying to control online gambling to make it safer. Some believe this approach could help reduce illegal gambling while allowing people to bet safely. Others, however, worry about possible social problems, especially in vulnerable communities.

Related articles

⁠Is betting legal in UK?

Is Betting Legal in Bangladesh?

⁠Is betting legal in Portugal?

How to spot cheating in casino?

How to spot cheating in betting?

How to deal with losing streak in betting and casino?